Hi Hawaiifiver
1. they didn't get it from anywhere, they 'set it', this is a sort of trick to make the problem involving 2 integers reduced to one integer (the sum of the other two)
2. This is a common technique for proof by induction
The idea is this:
You want to show that some property of n is valid for all possible values of n
First, you verify that it is true for 0, or 1 (it depends on where it starts, it could be true for all values >0, or >whatever, and you start from the first value that mus be ok). in this case, 0
Second, you prove that, "if the statement is true for any value up to a certain 'level', then it is also true for the next level"
That is, if it is true for some n, then, you use this truth to prove that it is also true at n+1, and since you had a proof that it was true at 0, then 1 will follow, then 2, etc.
3. this is the trickiest part of the proof, and I'm not too sure about what you really need to know, I think you should first make sure that the points 1. and 2. are well understood, let me know.
Cheers...